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Chile, December 18, 2023.
The objective is to combat the illicit tobacco trade and ensure tax revenues
The Internal Revenue Service (SII) of Chile awarded SICPA the tender for the renewal of the cigarette tax traceability system for a period of five years, starting in 2024. The solution, called Fiscal Traceability System (SITRAF), has for its operation with a traceability system based on SICPATRACE® technology from SICPA. This system has already proven its benefits since its first implementation in 2019. SITRAF is recognized by international institutions as a robust measure to control the production of genuine tobacco products and secure tax revenues. SICPA began implementing and operating the SITRAF system in Chile in 2019 for domestic and imported cigarettes. Based on public revenue collection data, it is estimated that the SITRAF system helped curb the illicit trade in tobacco products and its fiscal impact is estimated at more than 532 million US dollars, since its implementation, with an increase of 16.4 percent in tobacco tax collection from 2019 to 2022. The SITRAF system includes direct marking on locally produced cigarette packs for the Chilean market and digital tax stamps for imported cigarette packs. Cigarette packs produced locally for export are counted and registered in the system. Information captured in the SITRAF system is automatically reported to the SII databases. The International Monetary Fund (IMF) and the World Bank have highlighted the benefits of the SITRAF system, operated by SICPA, used in Chile to increase tax revenues and strengthen tax administration. In particular, the IMF emphasized that "reducing the large tax gap and illicit trade requires strengthened tax administration measures, such as the implementation of the SITRAF track and trace system."About SICPA Market leader in security inks for banknotes and leading provider of secure authentication, identification, traceability and supply chain solutions, SICPA is a trusted partner for governments, central banks, high security printers and industry in general. Every day, governments, businesses and millions of citizens rely on its expertise, which combines covert capabilities based on digital materials and technologies to protect the integrity and value of their currency, personal identity, valuable documents and electronic public administration services, as well as such as products and brands. True to its purpose of Enabling Trust through constant innovation, SICPA aims to promote a trust economy around the world, in which transactions, interactions and products in the physical and digital worlds are based on protected, unfalsifiable and verifiable data. www.sicpa.com
Contact Contact name: Jorge Trujillo Contact description: SICPA LATAM Business